AN ACT ESTABLISHING A POST EMPLOYMENT HEALTH INSURANCE LIABILITY FUND IN THE TOWN OF SUDBURY.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:
SECTION 1. The town of Sudbury may appropriate
funds in order to offset the anticipated cost of health insurance contributions
for retired employees, their spouses and eligible dependents and the surviving
spouses and eligible dependents of deceased retirees. This amount shall be credited
to a special fund to be known as the Post Employment Health Insurance Liability
Fund. The fund shall be under the supervision and management of the town manager
and under the custody of the town treasurer. The town treasurer may deposit
the proceeds in national banks or invest the proceeds by deposit in savings
banks, cooperative banks, or trust companies organized under the laws of the
commonwealth or in federal savings and loan associations situated in the commonwealth
or invest the funds in securities that are legal for the investment of funds
of savings banks under the laws of the commonwealth. Any interest or other income
earned by the fund shall be added to and become part of the fund. Amounts may
be appropriated to the fund by any town meeting by a majority vote not to exceed
the total liability developed by an actuarial study. Authorized disbursements
shall be made from the fund in payment of contributions and premiums for the
benefit of retirees and their eligible dependents and surviving spouses and
for costs associated with conducting the actuarial study without further appropriation.
The town manager may employ any qualified bank, trust company, corporation,
firm or person for advice on the investment of the fund and or to prepare an
actuarial study and may pay for this advice or service from this fund.
SECTION 2. This act shall take effect upon its passage.